Why isn't my corporate account, of which I am personally liable, reported on my credit report?

Question

I am personally liable for my corporate card, and obtaining it was based on my personal credit, but they say it is policy (not in writing) to not report accounts in good standing, only those 180 days or more delinquent.

I had previously worked for Enron. After the collapse in 12/01, it was 09/03 before I was working again (current employer). I dealt with AMEX, not my company, when Amex first denied the corporate account. But after researching my history and confirming I was an Enron-ex, agreed to issue me the account. My only limitation on the account was a retail cap, and pretty high at that. Though primarily used for business expenses, I do use it for restaurant expenses that may not necessarily be covered by corporate expense account. My understanding is that I am solely liable. So, given that, why can't I get credit for being in good standing?

Answer 1

Because of the legal standing of being incorporated.

Just because you personally signed for the card, does not make it your credit reference, you are more like a "co-signer" on the card. This guarantees the credit company gets their money even if the corporation defaults, re-organizes, sells or goes belly up, they got you.

Some times certain business loans will show up on your personal credit. Usually smaller banks who are more lending the money to you, in the name of your company.

Hey, feel good you're not delinquent, you are doing better than some other people in business now.

Answer 2

This is pretty common practice. I highly doubt that it was based on your personal credit, though. If it was, the inquiry and the account would show up on your credit report.

If you fail to pay the bill when due the corporation will ultimately be liable for payment. They may go after you if you abused the card or failed to pay the bills after you got your expense check, but that's another matter.

The "180 day rule" is usually reserved for when the employee has either made unauthorized personal charges on the card, or has been paid by the company for the expenses and subsequently failed to pay the credit card company from those funds. If it winds up on your credit report it will normally show your employer as the creditor, not the credit card company.

Answer 3

A corporation is legally an individual entity hence has it's own credit rating, hostory and report.

Banks however like you to sign agreements to accept liability for company debt.

Your liability is limited by the number of shares you possess (that have been issued to you).

Sounds like the bank is feeding you allsorts of crap probably cos they dont understand themselves.

Answer 4

Bamma big IRS man. Bamma say he know this.
Bamma say that just your job. Bamma say paying corporation card just something you do. Bamma say the corp. make the money. Bamma say the corp. pay the bills. Bamma say do you claim the corporation income as your own? Bamma say you can't have it both way. Bamma otta know.